Task Force OKs Uniform Licensing Apps

A joint task force on state banking and mortgage regulations has approved uniform licensing applications for mortgage companies and individual loan originators that will be tested by nearly a dozen states on new licensees.The Conference of State Bank Supervisors and American Association of Residential Mortgage Regulators developed the uniform applications to reduce the administrative burden on state-regulated lenders that operate regionally and nationally. CSBS/AARMR's next goal is to create a Web-based system that would allow companies and originators to apply for and renew licenses online. The website, similar to one used by the securities industry to track brokers, would list all registered companies, loan officers, and mortgage brokers along with any criminal history or enforcement actions. "This would allow states to identify fraudulent and abusive lenders and brokers when they leave one state and seek licenses in another," North Carolina Banking Commissioner Joseph Smith told a House panel Sept. 29. It would also allow companies to check the backgrounds of new hires, he said.